Icahn Enterprises L.P. ( IEP ) shares continue to trade higher Tuesday after rising more than 14% on Monday after the company announced the dismissal of a class action lawsuit.

What Happened: Icahn Enterprises ( IEP ) announced that U.S. District Court Judge K. Michael Moore found on Sept. 13 that the class action lawsuit against Icahn Enterprises ( IEP ) failed to show that the company made material misrepresentations or omissions or did so with an intent to defraud. The lawsuit had been related to claims made by short seller Hindenburg Research.

“We are pleased that the spurious claims of various unscrupulous characters, working together in a coordinated and clandestine network, have been debunked,” said Carl Icahn, chairman of Icahn Enterprises ( IEP ).

“We are also happy to have recently settled the investigation initiated by the SEC following the publication of Hindenburg’s false and misleading ‘research’ report. We cooperated fully with the SEC and the SEC found no fraud, inflation of our net asset value or impropriety in our distributions, nor did it validate any of Hindenburg’s other spurious claims. Instead, we settled a technical disclosure violation.”

In August, Icahn and his firm agreed to pay $1.5 million and $500,000 in civil penalties to settle the violation. According to the SEC, Icahn pledged approximately 51% to 82% of Icahn Enterprises' ( IEP ) outstanding securities as collateral to secure billions of dollars of personal margin loans under agreements with various lenders, starting in 2018. The billionaire investor allegedly failed to disclose the moves until 2022.

Regulators also alleged that Icahn failed to file amendments to securities filings describing his personal margin loan agreements and amendments dating back to at least 2005. 

Icahn Enterprises ( IEP ) announced in late August that it may issue and sell up to $400 million worth of its depositary units. The company on Tuesday said that it has sold less than $3.5 million worth of units under the program since it was announced.

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IEP Price Action: Icahn Enterprises ( IEP ) shares were up 7.91% Tuesday after closing Monday up 14.5%. The stock was hovering around $13.40 at the time of publication, per Benzinga Pro.